According to an article published in Fortune magazine earlier this year, sales of legal marijuana products are expected to hit $6.7 billion by 2016. Fortune, citing data from ArcView Market Research, noted that legal cannabis sales rose 17% over the previous year to reach $5.4 billion in 2015. Sales growth for this year is anticipated at an impressive 25%.
Fortune noted that the sales growth outlook for cannabis products is staggering, considering that the first recreational dispensaries opened only two years ago. By 2020, ArcView Market Research expects legal cannabis market to reach $21.8 billion. According to Fortune, this would make the legal cannabis market bigger than the National Football League (NFL).
The outlook augurs well for Skinvisible Pharmaceuticals Inc. (OTCQB:SKVI), a Las Vegas, Nevada-based company which licenses its proprietary formulations made with Invisicare®, its patented polymer delivery system that offers life-cycle management and unique enhancements for topically delivered products.
Skinvisible Pharmaceuticals shares are rallying in trading today after the company announced that it has licensed the exclusive world rights to its topical and transdermal cannabis products formulated with Invisicare to CannaSkin, LLC, a cannabis product licensing company with international contacts in the medical marijuana industry.
CannaSkin has the exclusive license to manufacture, market and sub-license Skinvisible's new cannabis products. Their targets will initially include facilities in the 25 U.S. jurisdictions currently approved for medical marijuana as well as Canada and Israel where there is a great demand for cannabis products supported by science.
SKVI plans to use its patented skin delivery system Invisicare to formulate and deliver high-quality topical cannabinoid products containing CBD and THC. CBD has proven to have many therapeutic effects and it does not produce the "high" associated with THC.
Commenting on the development, Terry Howlett, President of Skinvisible, said that the company is excited to enter into the emerging global cannabis market with CannaSkin, an extremely qualified partner in the cannabis industry. Howlett further said that Skinvisible will bring a new era of cannabis products; ones supported by science and patents and the company’s objective is to provide superior products with many options for medical marijuana consumers.
Skinvisible shares are seeing a huge rally in trading today. At last check, the stock was trading 28.71% higher at $0.0130 on volume of 100,000, which is nearly four times the daily average volume of 28,236.
